- Silver is again under selling pressure, breaking a two-day winning streak.
- The technical situation favors bears and supports prospects for further losses.
- Oversold oscillators on the daily chart warrant caution for bears.
the silver It struggles to take advantage of this week’s modest recovery gains posted in the past two days and finds new offers on Thursday. The white metal remains depressed midway through the European session and is currently sitting near the lower end of its daily trading range around the $20.80 area.
From a technical perspective, XAG/USD has, thus far, managed to hold above the 61.8% Fibonacci retracement level of the recent rally from the October 2022 low. Such support is pegged near the 20.60 zone. $, followed by the yearly low, around the $20.40 region hit earlier this week. A convincing break below the latter will be seen as a new trigger for bears and set the stage for an extension of the recent decline from the $24.65 area, or a multi-month high set in February.
Oscillators on the daily chart are approaching the oversold zone, with the RSI recovering from oversold. Therefore, it is prudent to wait for it to consolidate in the short term or for a moderate rebound before making further bearish bets. However, the lack of significant buying suggests that the path of least resistance for XAG/USD is to the downside. Therefore, some trailing weakness below $20.00, on the way to the next relevant support near the $19.75-$19.70 zone, looks like a distinct possibility.
On the other hand, the recovery attempt above the round figure of $21.00 seems to face a hurdle near the overnight high, around the $21.15-$21.20 zone, before the $21.35 region (50 % of the Fibonacci level). Any further strengthening could be seen as a selling opportunity and risks fading near the breakout of the $22.00 confluence support. This zone comprises the 100-day Simple Moving Average (SMA) and the 38.2% Fibonacci level, which if exceeded could nullify the downtrend.
XAG/USD could see a short-term rally towards the $22.55-$22.60 supply zone, above which the bulls could try to recapture the $23.00 round figure, which coincides with the 23.6% Fibonacci level .
silver daily chart
Key levels to watch
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
